VGN has bagged the property with a bid that works out to about Rs 31,250 a sq. ft.

Tata Communications has sold a nearly 1.5-acre property in the heart of Chennai for Rs 195 crore to VGN Group, a real estate developer.

According to reliable sources, VGN has bagged the property with a bid that works out to about Rs 31,250 a sq. ft for the property on Nungambakkam High Road.

The deal is expected to be registered by the weekend, according to the conditions of the transaction. This property has apartment blocks for Tata Communications’ employees.

The deal was mediated by international property consultants, Jones Lang LaSalle, which conducted an e-auction.

Four leading Chennai-based developers – the others were Ceebros, Arihant and Jain Housing – participated in the auction.

The four developers were shortlisted from a list of a dozen developers and others who had evinced interest in buying the property.

The price works out to about Rs 7.5 crore a ground – about 2,400 sq. ft, a common measure used in Chennai – for the 26-ground property. The size of the land parcel is rare in Nungambakkam, in central Chennai, which is one of the premium localities with a thriving residential and commercial development.

Leading property developers pointed out that while the price is a new high, as in the case of each new property transaction, the developer has landed a good deal.

With a potential to build 2.5 times the ground area, the Floor Space Index cost of built-up space works out to about Rs 12,500 a sq. ft.

As of now, one of the costliest residential projects, The Art, on Kothari Road about a kilometre away, commands Rs 22,000 a sq. ft.

(This article was published on February 27, 2013)
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